The morning news. [volume] (Savannah, Ga.) 1887-1900, 1887-06-27
GOOD TIMES COMING.
Comptroller Trenholm Predicts an IN
usual Era of Prosperity.


WASHINGTON Special to Ne,o York Herald.
Mr.. Trenholm, Comptroller of the Cur
rency, referring to the recent financial
furry in the West, said to-day: 1.-The bust
ness of the country is, should say, in good
condition generally. A safe and satisfac-
tory business is being done, and in the main
it is conservative. There seems to me to be
nothing to cause apprehension or to antici-
pate any great financial disarrangement."
as there not somewhat dangerous ten
dency to speculation in real estate, Mr..
COMPTROLLER
SIN measure yes, although | do not
want to be understood as saying that the
banks are not properly protecting them
selves or to cause any feeling OF alarm.
While in some respects real estate is the best
security possible, ON the other hand it is not
a security that bank should deal in. This
is a fact that have for some time continu
ally tried to impress upon the banks. A
bank should not lock up its money in real
estate, because of the uncertainty of the
market for such property. The functions
of bank are to constantly have its assets
in fluid state to be able to turn them over
and over readily. This cannot be done If
they are locked up in real estate"
do you think then, that the banks are
tying themselves up in real estate loansw
mo, not at the present time, but have
pointed out the possible dangers and the
need of caution
REAL ESTATE SPECULATION.
"Just now there is a great movement in
real estate throughout the entire country.
Is this speculative or legitimateN
at partly comes from the improved con-
dition of trade and the natural growth of the
country 1t is partly due to speculation.
Whenever land is valued at more than 1t
will produce it is speculative; whenever its
price is fixed at what it is believed it will
be worth, say ten years hence, its price is
speculative Let me cite you an extreme
case. In Northern Alabama are two
towns, eighty miles apart. The owners
of the property along the line of the
railroad between these two places already
see the time when these two towns will be
so densely populated that the interven-
ing property will be of almost inestimable
value. Consequently, to-day they base the
value of their holdings on that future and
of course this is pure speculation. This
case is an extreme one, yet in lesser degree
it can frequently be found elsewhere. There
has been tremendous development during
the last year in the great iron States of the
South, and also in many of the Western
States The starting of new enterprises
has created boom and speculation has to
some extent followed. But while there has
undoubtedly been some over capitalization
and imitation, on the whole the prosperity is
solid and substantial"
THE RECENT COLLAPSED CORNERS.
"Have the recent panics in the New York
coffee market, and the Chicago grain market
any real significance?"
f.None at all. Now that the cliques have
broken, it is a good thing, because the
money that has been locked up will again
go into active circulation, and business
which is injuriously affected by manipula-
ton viii resume its normal condition.
"Do you not regard it as dangerous that
Kershaw, Wiltshire and their partners
could get money enough from the banks to
carry 16, 0000 900 bushels of wheatg Does it
not show recklessness on the part of the
banks, or that they must have more money
than they know what to do within
Zone of the proper functions of bank,
one of its duties to the community, is to
advance money on proper security.
Whether these 100000 bushels were held
by one man or by sixteen men, or sixteen
hundred men, makes no difference, provided
the banks security is all right. 1t is legiti-
mate business for it to advance money on
grain. If, however, this money has been
got without security; if A Endorsed BIS note
and got it discounted, and B Endorsed AS,
no collateral being deposited, but the in
dorsement alone being regarded as sufficient,
that is another matter. OF course, | am
giving no opinion in advance, and have no
facts on which to base an opinion. l have
no doubt the banks have been prudent, but
you will recognize that anything l might
say on this subject is apt to be misconstrued.
| have no doubt that had l been in Cincin-
natl or Chicago last week, in the ordinary
course of business, my mere presence might
have given rise to rumors and caused EN-
barrassment."
MONEY PLENTY.
'Do you notice any tightness in the money
market ~
There appears to be ample money in the
country. The surrender of bank circulation
consequent upon the extinguishment of the
per cent loan at the end of the present
month will not be felt because the Treasury
will make some very large payments in July.
The return to low price of breadstuffs, con
sequent upon the failure of the bull specula-
ton, will cause a resumption of exports and
place this country in a position to draw
from abroad any supplies of gold necessary
to bring the volume of the currency up to
the requirements of the autumn. / can
close as commenced, by saying that l re-
gard the business of the country in good
shape, and with reasonable caution and
prudence we may look ahead and see good